While we can work with any business or entity that meets our minimum spending thresholds, we do have some ideal client types that we like to work with.
Manufacturing is definitely one of those. Why is that?
The answer is simple. Manufacturers have expenses in many categories that we help with, and they almost always meet our spending thresholds in those categories. This makes the return on investment of our time and our clients’ time most valuable in these engagements.
And we know the word “manufacturing” encompasses a very broad range of businesses. There is incredible diversity in the manufacturing industry. From chemical manufacturers to makers of tiny widgets, we can help. We specialize in all the vendors you work with, so we’ve seen it all before.
Some of the best areas where we are able to help manufacturers are in waste and recycling, utilities, uniform and linen services, merchant processing fees, and property taxes.
Manufacturers have very interesting and unique waste and recycling needs. Whether you are a chemical manufacturer dealing with hazardous liquid waste, a foundry with spent sand, or a manufacturer producing thousands of widgets, we can help. P3’s team of waste and recycling experts has worked in these environments many times before. In fact, our experts love working with manufacturing because it is more interesting and challenging. We know how to navigate these needs effectively to deliver the best solution and service at the best possible price.
Manufacturers are typically high consumers of energy.
In some cases, their needs almost always run 24 hours per day, creating unique energy requirements. In other cases, they have large pieces of equipment that require drawing significant amounts of power at specific times of the day.
The energy requirements for manufacturers can become very complex very quickly. These complications present many opportunities, though. There are typically a wide range of tariff options available for manufacturers, making it difficult to determine which is the best and most profitable. In some cases, if you choose the wrong tariff, you may not be allowed to switch back. Furthermore, there are many tax and exemption implications.
Manufacturers are by far the best clients we work with for utility audits, as we have the highest success rate with manufacturers. You can view our white paper here to explore more ways in which we help manufacturers in reducing their utility expenses and recoup money from errors and overcharges.
Merchant processing fees are probably one of the more interesting and surprising ways we help manufacturers save money. Most people do not think about this expense category when they think of manufacturing, but manufacturers often accept large orders through credit card payments. The expenses can add up quickly.
We go deep behind the scenes to analyze our clients’ interchange rates and uncover the places where hidden fees often reside. In almost every case, what a client thinks they are paying is nowhere near the “net” costs once you factor in the variety of ways these charges can “clear” at the processor.
Our experts have worked for and even managed these processing companies before. We use this expertise, along with thousands of benchmark data points, to ensure that our clients’ expenses are accurate and cost-efficient.
A manufacturer’s needs will largely depend on the size of the workforce at the local facility. If the employee count is high enough, there will often be substantial uniform and linen expenses with companies such as Cintas, Aramark, and others. Aside from averaging 30-40% savings, here we help ensure the contracts are buttoned up, and our clients have the proper protections in place to ensure price increases can’t eat into the budget.
Larger manufacturing facilities will often easily exceed the $10,000,000 property value threshold required for them to qualify for our property tax audit. This means their tax bills can exceed $100,000 per year. Local appraisers often value these properties using arcane, subjective, and incorrect valuation methods. Our team of experts has extensive experience challenging assessments of income-producing properties like this to ensure our clients’ tax burdens are fair and as low as possible.
*Client must be spending above this minimum annually, across its organization, to qualify for our free expense analysis. ** In this particular category, these are minimum annual spends per location. This means, for example, 50 locations spending $200/month would not be a good fit.
